Interest in Dolcis raises sale hopes

Around 40 parties have expressed interest in buying the struggling shoe retailer Dolcis, it was revealed today.

A total of 482 jobs were axed and 89 stores and concession outlets closed after the historic business went into administration on Monday.

Administrator KPMG said it was pleased at the level of interest – and that 644 staff in the 96 remaining sites would continue to be employed.

Following the axe on Monday Bay Trading concessions in Wolverhampton and Merry Hill have remained open but the Merry Hill Dolcis store and a concession in the shopping centre branch of Envy were closed. Fifteen people have lost their jobs.

KPMG partner Brian Green said: "I am very pleased to have been contacted by a range of parties interested in acquiring Dolcis and remain hopeful of finding a buyer for this well known high street brand.

"I'd like to thank the management and continuing employees for their ongoing efforts in trading the business as a positive solution is sought."

Dolcis traces its roots back to 1863, when John Upson began to sell his shoes from a street barrow in Woolwich market, London.

But the business has been losing market share to firms like New Look and Primark in recent years. It was reportedly unable to pay its £2.5 million rent bill last month.

John Kinnaird, the Scottish entrepreneur, bought Dolcis from Alexon, home to Bay Trading and Envy, in December 2006 for £2.7 million.

Alexon bought the business for £13.7 million in August 1999, but said in 2006 that half-year losses reached £2.4 million.

By January last year full year losses had reached £6 million at the troubled Coventry-based business.

Just before Christmas minority shareholder and corporate rescue specialist Epic Reconstruction had put administrators from KPMG on alert. Epic then sold its stake and the KPMG team stepped back as hopes were raised that fresh finance might be found.

But those hopes were dashed on Monday when the KPMG administrators were called in.

Joint administrator Brian Green said: "Dolcis is a victim of the tough trading conditions in which the sector is operating."